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Madrid uses its “My first home” program for young people for 18 million

© Reuters. Madrid uses its “My first home” program for young people for 18 million

Madrid, August 19 (.).- The “My first home” program of the Community of Madrid, to help young people under the age of 35 with the provision of up to 95% of mortgages on their first home, has come into effect. effective on Friday, after its publication in the BOCM yesterday, with a financial budget of 18 million euros, 50% more than the originally estimated budget, and which could benefit between 800 and 1,000 young people.

Although it is “very difficult” to calculate the number of users who will benefit from the scheme, it is estimated that between 800 and 1,000 young people could benefit, sources from the Ministry of Housing have indicated.

Since this is the first year, it is not clear what the number of beneficiaries will be, although “what the result is” will be revealed, and since this is an annual plan that will be repeated in the following years, it will become clear whether a larger amount or minor, have added sources.

With the publication of the order in BOCM, the election period, which lasts until September 15, opens, so that those financial entities that meet the conditions can apply to be included in “My first home”.

The regional government allocates an investment of 18 million euros, 50% more than the originally planned budget, to promote the emancipation of young people from Madrid who, despite their financial ability to pay, do not have enough savings to obtain a mortgage.

Thus, in cooperation with financial institutions, it will offer insurance to those who have sufficient funds to cover the balance of the amount they intend to purchase.

Those interested in benefiting from “My first home” must not be over 35 years old when the financing application is submitted to the financial institution, prove their legal residence in the Madrid region continuously and uninterruptedly for two years just before the loan application date and be your first home purchase in the national area.

It will be the banks, once they have fulfilled the contract with the Self-Employment Foundation, who will evaluate the individuals’ applications and provide mortgage loans for the purchase of the apartments for an amount greater than 80% and up to 95%. of the property’s value, as long as it does not exceed 390,000 euros, taking into account its appraised value or purchase price.

Financial institutions must also meet a number of requirements in order to participate in the “My First Home” program, including a minimum investment grade credit rating issued by a rating agency in the Eurosystem’s credit rating system and certification from the Bank of Spain’s Registry of Credit Institutions. , with branches of the financial institution in all municipalities of the Community of Madrid with a population of over 50,000 inhabitants.

The “My first home” initiative is included in the program for the protection of mothers and fathers and the promotion of birth rates and harmony 2022-2026 of the Community of Madrid, which aims to promote and protect motherhood and fatherhood or family harmony.

Expectant mothers under the age of 35 will have access to different regional actions aimed at facilitating the purchase of housing, as is the case with this new program; also help with the rental of public real estate, such as the Live Plan of the Autonomous Government which offers a rental price that is 40% below the marked price, or for an extension of a maximum of two years on non-payment of rent insurance through kl. youth rental program.

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